HCS483-Health Care Financial Accounting
When working as a health care administrator, one must make important financial decisions that can make or break the future of the organization. To give students a peak into some of these financial decisions, online simulations are used. This is the breakdown of one such simulation. The simulation in question deals with the Elijah Heart Center in New York State. The simulation covers three very distinction aspects of healthcare financial decisions that an administrator may have to make. First, a capital shortage and cost cutting techniques are delved into. What techniques can be employed that will provide adequate savings without significantly affecting the quality of care afforded to each patient? Next, the most cost effective equipment selections will be explored. What equipment should be bought; what equipment should be leased? Finally, there is a peak at the various funding methods available. What method is the best option for the long term of the organization? Capital Shortage and Cost Cutting Techniques
The first segment of the simulation dealt with choosing cost cutting techniques and an appropriate loan plan to deal with a capital shortage. As are present in life, the simulation offered a variety of cost cutting techniques to choose from to help lessen the capital shortage and therefor lessen the amount to be borrowed. The options included downsizing staff, cutting down on agency staff, changing the skill mix, reducing employee benefits, or reducing length of stay. Downsizing of staff would serve to save money but it is terrible for employee morale and patient care. Reducing employee benefits can impact employee morale, which in turn affects patient care. Reducing length of stay active affects patient care, as patients are being rushed out of the facility regardless of readiness. I chose to cut down on agency staff and to...